Zama Says Court Lifted Freeze on cUSDC Contract Holding $12.5 Million in USDC

According to Zama, a U.S. court lifted the freeze on its cUSDC contract after a dispute tied to Overnight Finance stakeholders, and the protocol says systems are back to normal ahead of launch.

USDC

Summary

Zama said a U.S. court lifted the freeze on its cUSDC contract and that all systems have returned to normal. The freeze had targeted a Zama protocol contract holding USDC after a dispute involving stakeholders in Overnight Finance. Zama had previously said the contract held $12.5 million in USDC, while the latest update says cUSDC will launch later this month with $5 million in USDC from Zama’s treasury. The case highlights how access to stablecoin-linked protocol infrastructure can be disrupted by legal action.

Terms & Concepts
  • USDC: A U.S. dollar-pegged stablecoin issued by Circle, designed to maintain a fixed value and commonly used across crypto markets.
  • stablecoin: A cryptocurrency designed to track a stable asset, typically a fiat currency such as the U.S. dollar.